The break below short-term key support at 123.49 forced us to review the entire correction in wave 2/. With the break below support at 123.49, the odds of wave 2/ being completed is low. It is likely to unfold in a very complex correction. We first saw an expanded flat correction in wave W/. Now the most likely correction type in wave Y/ of 2/ is a triangle. If this is correct, then we should expect a wave higher to 124.70 and a final dip close to 123.65 before wave 2/ finally completes and wave 3/ rises.
Only a direct break above 125.00 will eliminate the triangle option and indicate wave 3/ higher already is in motion towards at least 129.82.
R3: 125.00
R2: 124.70
R1: 124.11
Pivot: 123.80
S1: 123.65
S2: 123.35
S3: 123.00
Trading recommendation: Our stop at 123.45 was hit for a small loss. We will re-buy EUR here at 123.55 and place our at 122.90
The material has been provided by InstaForex Company - www.instaforex.com